Bill Text: PA HB235 | 2009-2010 | Regular Session | Introduced

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Bill Title: In casualty insurance, providing for professional and trade association rate protection.

Spectrum: Slight Partisan Bill (Republican 31-14)

Status: (Introduced - Dead) 2009-02-04 - Referred to INSURANCE [HB235 Detail]

Download: Pennsylvania-2009-HB235-Introduced.html

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PRINTER'S NO. 245
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 235 Session of2009
INTRODUCED BY PICKETT, BAKER, BEAR, BOYD, CALTAGIRONE, CAUSER, CLYMER, CREIGHTON, CUTLER, ELLIS, FABRIZIO, FLECK, GEIST, GEORGE, GIBBONS, GINGRICH, GOODMAN, GROVE, GRUCELA, HENNESSEY, HESS, M. KELLER, LONGIETTI, MELIO, MILLARD, MILNE, MUSTIO, PHILLIPS, PYLE, RAPP, READSHAW, REICHLEY, ROHRER, SCAVELLO, SIPTROTH, STABACK, STERN, STEVENSON, SWANGER, VULAKOVICH, WALKO, WANSACZ, WATSON, YOUNGBLOOD AND MOUL, FEBRUARY 4, 2009
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 4, 2009
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in casualty insurance, providing
for professional and trade association rate protection.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 17, 1921 (P.L.682, No.284), known
as The Insurance Company Law of 1921, is amended by adding a
section to read:
Section 633.1. Professional and Trade Association Rate
Protection.--(a) An insurer that offers group health, sickness
and accident insurance policies, and all other forms of managed
or capitated care plans or policies or subscriber contracts in
this Commonwealth to members of a professional or trade
association on or after the effective date of this section shall
base the premiums for association members based upon actual
claims and expense experience for such group provided that the
association's membership is comprised of at least fifty
individuals.
(b) This section does not include the following policies:
(1) Accident only.
(2) Hospital indemnity.
(3) Limited benefit.
(4) Credit.
(5) Dental.
(6) Vision.
(7) Specified disease.
(8) Medicare supplement.
(9) CHAMPUS (Civilian Health and Medical Program for the
Uniformed Services) supplement.
(10) Long-term care.
(11) Disability income.
(12) Workers' compensation.
(13) Automobile medical payment.
(c) As used in this section:
(1) "Insurer" means any entity subject to this act, the act
of December 29, 1972 (P.L.1701, No.364), known as the "Health
Maintenance Organization Act," or 40 Pa.C.S. Ch. 61 (relating to
hospital plan corporations) or 63 (relating to professional
health services plan corporations).
(2) "Professional or trade association" means a bona fide
organization whose membership consists of businesses associated
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together for legitimate purposes of mutual benefit or lawful
convenience that purchases insurance on a group basis on behalf
of members. An association cannot be formed for the sole purpose
of purchasing insurance.
Section 2. This act shall take effect immediately.
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